In the past 8 months, I have gone through a lot of changes.*Deep breath in*:

I searched for employment in the Industrial Engineering field

Got engaged to my best friend

Graduated from Iowa State University

Realized my heart was with Optimal Organization and chose to work on providing people with organizational solutions full time.

I lived like a nomad going to and from Iowa, Wisconsin and Illinois

Moved out of my college apartment in Ames, Iowa, the home I had known for the last 5 years.

Moved into our new apartment in Sheboygan, Wisconsin

All while working and planning a wedding.

Phew! Lots going on. So, when it comes to my financial situation, there are a lot of variables. Currently, most of my habits are geared towards finding middle ground with my fiancé, Nick. We both had our own systems for money management and our own habits for keeping track of it all prior to getting engaged. Tracking our finances and creating a budget was one thing that we wanted to establish right when we got engaged, so that we were as prepared as possible after our big day. Let me preface these 5 steps with: I AM NOT A MONEY EXPERT. I’m not an expert on saving, on accounting, on investing, none of it. I do not know all that there is to know about these subjects. However, through experience I have learned a few things that make figuring it out a little easier. That being said, here are a few of our take-a-ways in trying to merge to one system, but by no means does this only apply to couples. These are all valuable to think about if you are wanting to organize your finances.​

1. Do your research

​I drive so much so I love to listen to Podcasts. They are the easiest way for me to get informed. There are SO many options for personal finance podcasts and finance consultants, so make sure you find which one will best fit/address your needs. I personally like the Words and Money Podcast hosted by Tess Wicks. A lot of her content is geared towards millennials going through and saving for a lot of the things I am.

Another good thing to research is where your money can be allocated. Do you want it in checking/savings accounts in the bank? Do you want to invest it? This is important to be able to get the best bang for your buck and reach your saving goals.

​2. Know what you have & have open communication

Money can be a taboo subject, but it is so important to be able to talk about it. I can’t stress this one enough. Know what you have and don’t be afraid to ask questions. Whether that is with your parents, your significant other, or a financial adviser, ask questions. Once you know all the assets and liabilities you have, you can start planning where your cash flow will be allocated.

In all the advice I have received as I’m preparing to get married, the most frequent advice is to make sure you are both on the same page and have those open communication money conversations. Know what you’re both bringing to the marriage and what debts you have. Also, one of the best things we did was make our goals clear. Make a list (on your own) of your short term and long-term goals and what you’d like to save for. Then compare those with your significant other and prioritize both of your goals. That way you are both on the same page and planning for the same goals!

3. Make sure it’s within the realm of possibility

This is where last week’s #GoodFindFriday comes into play. I hinted that one of us was a receipt person and the other was not after sharing our file sorter from Home Goods. The way my brain works is if I enter in receipts weekly (so they don’t pile up and become a daunting task), it is a way for me to see how I’ve spent my money. I do this in excel, and then can filter and sort to see where most of it went and see from month to month how that has changed. Nick on the other hand like to do it all electronically through mint. Both are 100% okay! The important thing here is that we both had to take time to see where the other was coming from and why we had the processes we do. It wouldn’t be fair if I expected him to suddenly become a receipt tracker, or if he expected me to move to be 100% electronic. We had to compromise. With your finances, make sure you’re not asking yourself to make a million drastic changes at once. It will not be a sustainable system. Make one change at a time and evaluate after each one.

Have a plan, but know that it may not always work out that way. Budgeting is a tricky thing and it takes a few months to get in the groove of things, but having a starting point is the important thing. Done is better than perfect. As you start you will be able to see where you need to make changes. Also, budget for the mishaps! One of the most important things that Tess Wicks (and most financially sound people) say is that having an emergency fund is one of the most important steps to being financially responsible and organizing your finances. Being prepared and being able to be flexible will ease the stress of managing your finances.

5. Revisit your system/budget frequently

I recommend reviewing everything monthly to be proactive instead of reactive, and revisiting your system and money tracking process every 6 months. Your situation may change, and you should update your system to best suit those changes!

Organizing your finances has the ability to reduce stress if you let it. These are 5 simple steps to think about when organizing your finances. Some are so obvious but we often get caught up in life and forget. Start simple, implement one thing at a time, and remember to always budget for a cup of coffee 😉 Comment below with any other tips you have! Any other apps you like? What are some of the ways you track expenses? Help each other out!

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Author

Emily has a Bachelor of Science in Industrial Engineering from Iowa State University. There she learned how valuable organization can be in being productive. She chose to use this knowledge and help others achieve this productivity and optimization in their homes and small businesses. Read & Enjoy and as always, let us know if you have any questions!